LITHIA MOTORS INC (LAD) Fundamental Analysis & Valuation

NYSE:LAD • US5367971034

Current stock price

252.86 USD
+0.28 (+0.11%)
Last:

This LAD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. LAD Profitability Analysis

1.1 Basic Checks

  • In the past year LAD was profitable.
  • In the past year LAD had a positive cash flow from operations.
  • Each year in the past 5 years LAD has been profitable.
  • The reported operating cash flow has been mixed in the past 5 years: LAD reported negative operating cash flow in multiple years.
LAD Yearly Net Income VS EBIT VS OCF VS FCFLAD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B 1.5B

1.2 Ratios

  • With a decent Return On Assets value of 3.26%, LAD is doing good in the industry, outperforming 63.41% of the companies in the same industry.
  • With a decent Return On Equity value of 12.41%, LAD is doing good in the industry, outperforming 70.73% of the companies in the same industry.
  • LAD has a Return On Invested Capital (5.16%) which is in line with its industry peers.
  • LAD had an Average Return On Invested Capital over the past 3 years of 5.89%. This is significantly below the industry average of 13.21%.
Industry RankSector Rank
ROA 3.26%
ROE 12.41%
ROIC 5.16%
ROA(3y)3.94%
ROA(5y)5.93%
ROE(3y)13.5%
ROE(5y)17.49%
ROIC(3y)5.89%
ROIC(5y)8.14%
LAD Yearly ROA, ROE, ROICLAD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • The Profit Margin of LAD (2.18%) is better than 62.60% of its industry peers.
  • LAD's Profit Margin has declined in the last couple of years.
  • LAD's Operating Margin of 4.26% is fine compared to the rest of the industry. LAD outperforms 65.85% of its industry peers.
  • In the last couple of years the Operating Margin of LAD has declined.
  • LAD's Gross Margin of 15.43% is on the low side compared to the rest of the industry. LAD is outperformed by 84.55% of its industry peers.
  • LAD's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 4.26%
PM (TTM) 2.18%
GM 15.43%
OM growth 3Y-14.02%
OM growth 5Y-4.11%
PM growth 3Y-21.12%
PM growth 5Y-9.47%
GM growth 3Y-5.46%
GM growth 5Y-1.87%
LAD Yearly Profit, Operating, Gross MarginsLAD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. LAD Health Analysis

2.1 Basic Checks

  • LAD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • LAD has less shares outstanding than it did 1 year ago.
  • LAD has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for LAD is higher compared to a year ago.
LAD Yearly Shares OutstandingLAD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M 25M
LAD Yearly Total Debt VS Total AssetsLAD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • An Altman-Z score of 2.32 indicates that LAD is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of LAD (2.32) is comparable to the rest of the industry.
  • The Debt to FCF ratio of LAD is 2555.50, which is on the high side as it means it would take LAD, 2555.50 years of fcf income to pay off all of its debts.
  • LAD has a Debt to FCF ratio of 2555.50. This is in the lower half of the industry: LAD underperforms 61.79% of its industry peers.
  • A Debt/Equity ratio of 2.22 is on the high side and indicates that LAD has dependencies on debt financing.
  • With a Debt to Equity ratio value of 2.22, LAD is not doing good in the industry: 68.29% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.22
Debt/FCF 2555.5
Altman-Z 2.32
ROIC/WACC0.89
WACC5.8%
LAD Yearly LT Debt VS Equity VS FCFLAD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 1.17 indicates that LAD should not have too much problems paying its short term obligations.
  • LAD's Current ratio of 1.17 is on the low side compared to the rest of the industry. LAD is outperformed by 60.98% of its industry peers.
  • A Quick Ratio of 0.26 indicates that LAD may have some problems paying its short term obligations.
  • LAD has a worse Quick ratio (0.26) than 80.49% of its industry peers.
Industry RankSector Rank
Current Ratio 1.17
Quick Ratio 0.26
LAD Yearly Current Assets VS Current LiabilitesLAD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. LAD Growth Analysis

3.1 Past

  • LAD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.88%, which is quite good.
  • The Earnings Per Share has been growing by 13.56% on average over the past years. This is quite good.
  • Looking at the last year, LAD shows a small growth in Revenue. The Revenue has grown by 4.00% in the last year.
  • Measured over the past years, LAD shows a very strong growth in Revenue. The Revenue has been growing by 23.45% on average per year.
EPS 1Y (TTM)13.88%
EPS 3Y-8.3%
EPS 5Y13.56%
EPS Q2Q%-13.48%
Revenue 1Y (TTM)4%
Revenue growth 3Y10.11%
Revenue growth 5Y23.45%
Sales Q2Q%-0.26%

3.2 Future

  • The Earnings Per Share is expected to grow by 14.23% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 5.13% on average over the next years.
EPS Next Y8.45%
EPS Next 2Y11.32%
EPS Next 3Y11.73%
EPS Next 5Y14.23%
Revenue Next Year3.73%
Revenue Next 2Y4.02%
Revenue Next 3Y5.75%
Revenue Next 5Y5.13%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
LAD Yearly Revenue VS EstimatesLAD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B
LAD Yearly EPS VS EstimatesLAD Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20 40 60

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Find the best growth stocksShow best growing peers

6

4. LAD Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 7.41, the valuation of LAD can be described as very cheap.
  • Based on the Price/Earnings ratio, LAD is valued cheaper than 92.68% of the companies in the same industry.
  • LAD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.54.
  • With a Price/Forward Earnings ratio of 6.83, the valuation of LAD can be described as very cheap.
  • 95.12% of the companies in the same industry are more expensive than LAD, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 22.70. LAD is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 7.41
Fwd PE 6.83
LAD Price Earnings VS Forward Price EarningsLAD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, LAD is valued a bit cheaper than the industry average as 65.04% of the companies are valued more expensively.
  • 60.98% of the companies in the same industry are cheaper than LAD, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 1015.8
EV/EBITDA 8.09
LAD Per share dataLAD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 500 1K 1.5K

4.3 Compensation for Growth

  • LAD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.88
PEG (5Y)0.55
EPS Next 2Y11.32%
EPS Next 3Y11.73%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. LAD Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.89%, LAD is not a good candidate for dividend investing.
  • The stock price of LAD dropped by -26.66% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • Compared to an average industry Dividend Yield of 2.79, LAD pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, LAD's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.89%

5.2 History

  • The dividend of LAD is nicely growing with an annual growth rate of 13.75%!
  • LAD has been paying a dividend for at least 10 years, so it has a reliable track record.
  • LAD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.75%
Div Incr Years11
Div Non Decr Years11
LAD Yearly Dividends per shareLAD Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • LAD pays out 6.75% of its income as dividend. This is a sustainable payout ratio.
  • LAD's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP6.75%
EPS Next 2Y11.32%
EPS Next 3Y11.73%
LAD Yearly Income VS Free CF VS DividendLAD Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B 1.5B
LAD Dividend Payout.LAD Dividend Payout, showing the Payout Ratio.LAD Dividend Payout.PayoutRetained Earnings

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LAD Fundamentals: All Metrics, Ratios and Statistics

LITHIA MOTORS INC

NYSE:LAD (3/24/2026, 10:06:04 AM)

252.86

+0.28 (+0.11%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-11
Earnings (Next)04-21
Inst Owners105.15%
Inst Owner Change-2.83%
Ins Owners1.2%
Ins Owner Change8.75%
Market Cap5.89B
Revenue(TTM)37.63B
Net Income(TTM)819.60M
Analysts80
Price Target403.7 (59.65%)
Short Float %9.25%
Short Ratio6.89
Dividend
Industry RankSector Rank
Dividend Yield 0.89%
Yearly Dividend2.22
Dividend Growth(5Y)13.75%
DP6.75%
Div Incr Years11
Div Non Decr Years11
Ex-Date03-06
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.65%
Min EPS beat(2)-17.73%
Max EPS beat(2)10.43%
EPS beat(4)2
Avg EPS beat(4)0.21%
Min EPS beat(4)-17.73%
Max EPS beat(4)10.43%
EPS beat(8)5
Avg EPS beat(8)0.24%
EPS beat(12)6
Avg EPS beat(12)0.31%
EPS beat(16)7
Avg EPS beat(16)0.15%
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-0.9%
Max Revenue beat(2)1.29%
Revenue beat(4)1
Avg Revenue beat(4)-1%
Min Revenue beat(4)-2.33%
Max Revenue beat(4)1.29%
Revenue beat(8)2
Avg Revenue beat(8)-1.35%
Revenue beat(12)3
Avg Revenue beat(12)-1.62%
Revenue beat(16)4
Avg Revenue beat(16)-1.24%
PT rev (1m)-0.52%
PT rev (3m)0.46%
EPS NQ rev (1m)-1.92%
EPS NQ rev (3m)-7.94%
EPS NY rev (1m)-3.38%
EPS NY rev (3m)-3.76%
Revenue NQ rev (1m)-0.94%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-0.98%
Valuation
Industry RankSector Rank
PE 7.41
Fwd PE 6.83
P/S 0.16
P/FCF 1015.8
P/OCF 16.52
P/B 0.89
P/tB 4.37
EV/EBITDA 8.09
EPS(TTM)34.14
EY13.5%
EPS(NY)37.02
Fwd EY14.64%
FCF(TTM)0.25
FCFY0.1%
OCF(TTM)15.31
OCFY6.05%
SpS1615.23
BVpS283.4
TBVpS57.9
PEG (NY)0.88
PEG (5Y)0.55
Graham Number466.58
Profitability
Industry RankSector Rank
ROA 3.26%
ROE 12.41%
ROCE 8.71%
ROIC 5.16%
ROICexc 5.19%
ROICexgc 6.69%
OM 4.26%
PM (TTM) 2.18%
GM 15.43%
FCFM 0.02%
ROA(3y)3.94%
ROA(5y)5.93%
ROE(3y)13.5%
ROE(5y)17.49%
ROIC(3y)5.89%
ROIC(5y)8.14%
ROICexc(3y)6.06%
ROICexc(5y)8.32%
ROICexgc(3y)7.91%
ROICexgc(5y)10.68%
ROCE(3y)9.93%
ROCE(5y)13.01%
ROICexgc growth 3Y-21.27%
ROICexgc growth 5Y-4.67%
ROICexc growth 3Y-20.69%
ROICexc growth 5Y-6.78%
OM growth 3Y-14.02%
OM growth 5Y-4.11%
PM growth 3Y-21.12%
PM growth 5Y-9.47%
GM growth 3Y-5.46%
GM growth 5Y-1.87%
F-Score4
Asset Turnover1.5
Health
Industry RankSector Rank
Debt/Equity 2.22
Debt/FCF 2555.5
Debt/EBITDA 7.62
Cap/Depr 108.44%
Cap/Sales 0.93%
Interest Coverage 2.26
Cash Conversion 18.51%
Profit Quality 0.71%
Current Ratio 1.17
Quick Ratio 0.26
Altman-Z 2.32
F-Score4
WACC5.8%
ROIC/WACC0.89
Cap/Depr(3y)113.41%
Cap/Depr(5y)144.06%
Cap/Sales(3y)0.88%
Cap/Sales(5y)0.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.88%
EPS 3Y-8.3%
EPS 5Y13.56%
EPS Q2Q%-13.48%
EPS Next Y8.45%
EPS Next 2Y11.32%
EPS Next 3Y11.73%
EPS Next 5Y14.23%
Revenue 1Y (TTM)4%
Revenue growth 3Y10.11%
Revenue growth 5Y23.45%
Sales Q2Q%-0.26%
Revenue Next Year3.73%
Revenue Next 2Y4.02%
Revenue Next 3Y5.75%
Revenue Next 5Y5.13%
EBIT growth 1Y0.55%
EBIT growth 3Y-5.32%
EBIT growth 5Y18.38%
EBIT Next Year9.28%
EBIT Next 3Y10.3%
EBIT Next 5Y10.36%
FCF growth 1Y-92.13%
FCF growth 3YN/A
FCF growth 5Y-56.55%
OCF growth 1Y-16.09%
OCF growth 3YN/A
OCF growth 5Y-8.04%

LITHIA MOTORS INC / LAD Fundamental Analysis FAQ

What is the fundamental rating for LAD stock?

ChartMill assigns a fundamental rating of 4 / 10 to LAD.


What is the valuation status for LAD stock?

ChartMill assigns a valuation rating of 6 / 10 to LITHIA MOTORS INC (LAD). This can be considered as Fairly Valued.


How profitable is LITHIA MOTORS INC (LAD) stock?

LITHIA MOTORS INC (LAD) has a profitability rating of 4 / 10.


What is the earnings growth outlook for LITHIA MOTORS INC?

The Earnings per Share (EPS) of LITHIA MOTORS INC (LAD) is expected to grow by 8.45% in the next year.


Can you provide the dividend sustainability for LAD stock?

The dividend rating of LITHIA MOTORS INC (LAD) is 6 / 10 and the dividend payout ratio is 6.75%.